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NEW YORK (

Trefis

) --

Johnson Controls

(JCI) - Get Report

, the global energy efficiency solution provider, has signed a contract with the U.S. Army to drive efficiency improvements at Fort Buchanan and U.S. Army Reserve Centers in Puerto Rico.

The $34.3 million projected, will be executed through the U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, Ala., and will aim to provide the post with renewable energy sources, updated lighting and other innovative systems.

This deal follows another contract that Johnson Controls signed with Army's Fort Bliss for a solar photovoltaic system and energy efficiency improvements. The energy efficiency is a part of Johnson Controls' "Heating, Ventilating and AC systems" which accounts for nearly 30% of the stock's value.

Johnson Controls has benefited immensely from the federal government's EPSC (Energy Performance Savings Contracts) program. It has implemented over 100 projects under this scheme for various agencies, including the Army, Department of Energy, Air Force, Navy, General Services Administration, Department of Veterans Affairs, Justice Department and Department of the Interior.

The firm's project at Fort Buchanan and U.S. Army Reserve Centers in Puerto Rico are expected to save $61 million over the next 16 years while creating over 100 local jobs. Johnson Control has guaranteed this savings amount and will reimburse Fort Bucchanan if the target is not met. These savings will be used to fund the project.

The project will touch all aspects of energy use at the post, including solar power generation, solar thermal applications, wind power generation, new indoor and exterior LED lighting, a building automation and control system to manage energy at 87 buildings and other energy efficiency improvements.

In the project with Army's Fort Bliss, the project is expected to drive savings to the tune of $39 million over the next 24 years spread across West Texas and West Mexico.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.